Is it too late to buy Silver Chef Limited?

What: Silver Chef Limited (ASX: SIV) skyrocketed 10.5% on Friday after the company announced it expected to report NPAT for FY14 at the upper end of guidance, based on a guidance range of $12.3 million to $12.7 million. Friday’s jump took Silver Chef’s weekly gain to 8.4% while the S&P/ASX All Ordinaries Index (Index: ^AXAO) (ASX: XAO) declined 0.7%.

So What: Friday’s announcement came after the company delivered a shock profit warning in December which cited slower than expected growth from its GoGetta business, which is one of Silver Chef’s primary growth divisions. At the time, it stated that it expected full year NPAT to be 10-15% below previous guidance of $13 million.

However, the company also indicated that it had implemented initiatives to stimulate growth in the division, and that was reflected in Friday’s announcement.

Now What: Despite last week’s gain, Silver Chef is still sitting more than 36% below its 52-week high of $8.94. Although there is always a higher element of risk when investing in small-cap stocks, Silver Chef has shown its ability to generate strong growth in the past and looks set to continue doing so over the long term.

An even better bet than Silver Chef

Silver Chef is an appealing small-cap stock which could deliver enormous gains over the coming years, but there is another company looking even more appealing right now...

The Motley Fool has issued a firm "BUY" rating on this small but ultra promising ASX company... and you can get the name and code FREE right now. Click here for your free copy of "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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